There’s a great article in the November issue of Adbusters (www.adbusters.org) “What’s Wrong with Being the World’s #2?” by Roland Kelts. The title is a direct quote from Renho, Japan’s 42 year old Minister of Administrative Reform. She was referring to a supercomputer – not to Japan’s economy – at the time. However she caught enough flack for the comment that she subsequently published a book Do We Have to be Number 1?

Japan has had an essentially stagnant economy for two decades – not because they did anything wrong – but simply because they fell victim to the “stagnation” that is inevitable in end-stage capitalism (see “Is Capitalism Doomed?” http://stuartbramhall.aegauthorblogs.com/2010/08/14/is-capitalism-doomed/). And ever since the current economic crisis began in 2008, US economists and politicians have been wringing their hands about the “Japanization” of the US economy – terrified the same thing was happening in the US.

A Model for a No-Growth, Steady State Economy

In his article Kelts points out that Japan provides an excellent model for a no-growth, steady state economy – something that sustainability activists and more and more intellectuals know is the only solution to the dual crisis of resource scarcity and catastrophic climate change. The reality is that we live on a finite planet with finite resources and the unlimited perpetual growth trumpeted by free market economists simply isn’t possible.

Retaking Control of the Money Supply

Renouncing growth in the US won’t be easy because it will require a total revamp of the way we create money. The first thing that needs to happen for the public to retake control of the money supply, which they gave up in 1913 when they handed it over to the Federal Reserve.

At present “money” is created through the Fractional Reserve Lending System, which is basically a Ponzi scheme that allows banks to create money out of thin air. In the US money is created when borrow money on your mortgage or credit card (in other words it doesn’t exist until you borrow it). That money only comes into existence when you start to make payments on that debt.

Like all Ponzi schemes, it only works by constantly drawing new suckers into it. Because that money doesn’t exist anywhere in the economy until people borrow it, there is no hope of them repaying their debts without constant growth and wealth creation (which is why there is constant pressure on consumers to consume).

I think it’s time for US political and economic leaders to accept that the economy isn’t recovering – that this model simply isn’t working any longer. And as Kelts suggests, to take a closer look at the trends developing in Japan.

De-ownership, De-materialism, and De-monetization

Kelts refers to an interesting article in Treehugger in September (see http://www.treehugger.com/files/2010/09/japanese_trends.php) by Japanese environmentalist Junko Edahiro outlining a new Japanese paradigm she refers to as De-ownership, de-materialism and de-monetization. All seem to come easily to the Japanese. who have a long tradition of frugality associated with the ideal Samurai lifestyle.

• De-ownership – is associated with a decreasing emphasis on owning (”consuming”) high ticket items that can be shared among individuals and families, and is seen in a trend toward house and car sharing, renting one-time use items, such as CDs and DVDs, and second hand purchases.
• De-materialism – is associated with valuing intangibles, such as nature, the outdoors, and relationships over material things.
• De-monetization – is associated with a shift from full time work to a part time lifestyle that allows people time to produce basis necessities (such as food) rather than earning money to pay for them.

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